Health Canada License for Early Lung Cancer Test

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Perceptronix Receives Health Canada License for Early Lung Cancer Test

Canadian Launch of ClearSign Sputum Test in Q4, 2006

VANCOUVER, Aug. 21 /CNW/ - Perceptronix Medical Inc. ("Perceptronix")

announced today that it has been issued a Class III in vitro Diagnostic Device

License from Health Canada for its ClearSign Sputum Test for the detection

of early lung cancer. Perceptronix can now market this test service in Canada

as well as in the European Union, having received CE Mark registration in May,

2006.

The ClearSign Sputum Test measures DNA in thousands of lung cells

collected from induced sputum (the fluid from a deep cough). The test is

indicated for people who are suspected of having lung cancer due to their high

risk smoking or industrial carcinogen exposure history and the presence of

symptoms or other indications such as suspicious radiography. Like other

cancer detection tests such as the Pap or PSA test, the ClearSign Sputum

Test provides a likelihood assessment for cancer to help identify people who

require follow-on tests such as bronchoscopy, radiography, etc.

Perceptronix's Director of Detection Products, Dr. Roger Kemp, stated

that, "We expect the relatively inexpensive and non-invasive ClearSign

Sputum Test, which does not involve radiation, to impact lung cancer patients

because early diagnosis offers the best hope for a favourable outcome. The

clinical trial results show that, unlike many of the other lung cancer

detection technologies, ClearSign Sputum Test sensitivity is virtually

independent of tumour stage (early versus late), location (peripheral versus

central airways) and cancer histological type (squamous cell versus

adenocarcinoma or small cell cancer)."

This Health Canada license permits Perceptronix to roll-out the

ClearSign Sputum Test across Canada. The test will be ordered by

physicians in Canada and Europe with the laboratory analysis being performed

at Perceptronix's recently opened Quantitative Cytology Laboratory in

Vancouver, Canada, starting in early Q4, 2006. As the test gains market

acceptance, it is expected that the laboratory analysis will also be performed

in Europe.

"This license is very timely," said Milton Wong, Perceptronix Board

Chairman. "On 25th May, 2006, United States Congressman Clay Shaw, a two time

cancer survivor, introduced the 'Medicare Lung Cancer Screening Benefit Act of

2006' to the House of Representatives. Among other things, the proposed Act

would amend the Social Security Act to provide coverage for lung cancer

screening tests including 'sputum analysis' and 'fluorescent bronchoscopy,'

both key parts of the Perceptronix product portfolio. We enter the market with

great optimism and excitement."

Lung cancer is both the most common cancer and the most common cause of

cancer death worldwide, with almost exactly the same number of incident cases

in the developing world as in the developed world for a total of 1.35 million

in 2002, leading to 1.2 million deaths or about 18% of the world's cancer

deaths.

The Perceptronix suite of technologies

The ClearSign Sputum Test is part of a comprehensive suite of cancer

diagnosis technologies to be offered by Perceptronix:

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The Perceptronix Clinical Quantitative Cytology Laboratory in Vancouver,

Canada, currently performs the ClearCyte Test to assist clinicians in the

diagnosis and prognosis of cancer and expects to perform the ClearSign

Sputum Test starting in Q4, 2006. This Laboratory operates under guidance from

the Diagnostic Accreditation Program of the British Columbia College of

Physicians and Surgeons and accreditation is expected to be achieved by year

end.

About Perceptronix Medical Inc. (www.perceptronix.com)

Perceptronix is a private cancer diagnostics company based in Vancouver,

Canada. Perceptronix commercializes early cancer detection technologies

developed in partnership with the BC Cancer Agency (www.bccancer.bc.ca), a

world-leader in cancer care and research and a pioneer in early cancer

detection programs.

This press release is not, and under no circumstances is to be construed

as, an advertisement, solicitation or offering of securities of Perceptronix

Medical Inc. The statements made in this press release may contain certain

forward-looking statements that involve a number of risks and uncertainties.

Actual events or results may differ from the Company's expectations.

For further information: Susan Grose, Corporate Secretary, Perceptronix

Medical Inc., Ste. 400, 555 West 8th Avenue, Vancouver, Canada, V5Z 1C6,

Phone: (604) 707-9037, info@perceptronix.com; Media Contact: Don Bradley,

Senior Account Manager & Senior Counsellor, James Hoggan & Associates Inc.,

Phone: (604) 739-7500, Mobile: (604) 961-3883, Fax: (604) 736-9902